Tuesday, 15 October 2019

After bitcoin crackdown, China now wants centralised digital currency

China was once a stronghold of bitcoin
Dealing with China's high-tech ambitions
As Facebook readies to launch its answer to bitcoin, China is set to introduce its own digital currency — one that could allow the government and the central bank to see what people spend their money on, according to analysts.
Far from the libertarian ideals of cryptocurrencies, whose anonymity allows users to buy and sell without leaving a digital trail, China’s mooted e-cash system will be tightly regulated, experts say, and run by the People’s Bank of China, the central bank. It “would give the PBoC greater insight into transactions throughout the country,” analysts at Beijing-based research firm Trivium China said in a note.
In late September, central bank governor Yi Gang said China’s new currency may be associated with existing electronic payment systems, such as the popular WeChat and AliPay phone apps, which are widespread and allow yuan transactions via bank accounts.
While he gave no timetable, Chinese media are putting their money on a November 11 launch to coincide with “Singles Day” — a massive, annual online sales event. Yi did not say what shape the currency would take. “We will not predetermine the technical path,” he said…

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